Sam Houston Electric Cooperative Inc

“The Cooperative has only one class of members. Each member has a right to: receive adequate and dependable electric service, privacy, be heard at member meetings, their share of capital credits, information about Sam Houston ECI, have their property treated with care by Cooperative employees, be heard if they have a dispute or complaint, and have service without regard to race, color, sex, nationality, religion, or marital status.”

“The members have the ability to elect the governing body. Directors are elected for 5 year terms and must meet certain qualifications as defined by the Cooperative bylaws. Elections are conducted by mail or electronic ballot. The Board of Directors appoints an election committee whose terms and qualifications are defined in the bylaws. Nominees are chosen and a ballot is prepared and posted as well as mailed. Nominations by petition are also accepted. A deadline for receipt of ballots is defined in the Cooperative bylaws. A nominee receiving the most votes for a particular place shall be deemed elected.”

“The members must approve by vote all directors as well as any changes to the Articles of Incorporation.”

“One of the duties assigned to the audit committee by the board is preliminary review of the 990. Each member of the audit committee is allowed time to review the 990 and inquire to parties responsible for the 990 completion and filing. Once the audit committee has reviewed and approved the 990, it is made available to the full board for review and questions. The audit committee makes a recommendation to the entire board that the 990 be approved and filed. After board approval, the 990 is filed and subsequently made available to all members on the cooperatives website.”

“The Cooperative has included a Conflict of Interest Policy in their Board Policy manual. Board members are questioned annually and required to sign an affidavit identifying whether any such conflicts exist. The Board of Directors is responsible for interpreting and enforcing the Policy.”

“Independent wage and salary surveys are obtained annually. For the past several years, surveys were obtained from NRECA and an additional independent source. The CEO salary is reviewed by a special Board Committee and approved by the Board of Directors. The other officers and key employee salaries are reviewed by the CEO and recommendations are made to the full Board for approval.”

“Governing documents and financial statements are available on the Cooperative's website. Financial statements are also included in an annual report and mailed to all members.”

“= -$0”

“Other Comprehensive Income = -$92334”